The balance sheet of Hamilton Corporation at December 31, 19X6, reported the following stockholders' equity:

During 19X7 Hamilton completed the following selected transactions:
Feb. 7 Discovered that income tax expense of 19X6 was understated by \(\$ 24,000\). Recorded a prior-period adjustment to correct the error.
Apr. 30 Declared a 10 -percent stock dividend on the common stock. The market value of Hamilton common stock was \(\$ 24\) per share. The record date was May 21 , with distribution set for June 5 .
June 5 Issued the stock dividend shares.
July 29 Purchased 2,000 shares of the company's own common stock at \(\$ 21\) per share.
Nov. 13 Sold 400 shares of treasury common stock for \(\$ 22\) per share.
27 Declared a \(\$ 0.30\) per share dividend on the common stock outstanding. The date of record was December 17, and the payment date was January 7, 19X8.
Dec. 31 Closed the \(\$ 62,000\) credit balance of Income Summary to Retained Earnings.
\section*{Required}
1. Record the transactions in the general journal.
2. Prepare a retained earnings statement at December \(31,19 \mathrm{X} 7\).
3. Prepare the stockholders' equity section of the balance sheet at December 31,19X7.

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Paid-in capital: Common stock, $10 par, 100,000 shares authorized, 20,000 shares issued... Paid-in capital in excess of par-common Total paid-in capital.......... Retained earnings... Total stockholders' equity. $200,000 300,000 500,000 190,000 $690,000